KLSE and MESDAQ today signed a memorandum of understanding (MOU) to set out the agreement for both parties to enter into detailed negotiations to facilitate the consolidation exercise.
A joint working committee headed by the Securities Commission and comprising representatives from KLSE and MESDAQ has been formed to ensure that the exercise is in line with the recommendations of the Capital Market Masterplan (CMP) to establish a single Malaysian exchange through the consolidation of all existing exchanges by 2002.
KLSE Executive Chairman Dato' Mohd Azlan Hashim said the establishment of a single exchange is a strategic development for the Malaysian capital market.
"The objective of integrating the existing exchanges into a single exchange is to enhance the efficiency and competitiveness of the Malaysian capital market and securities industry."
"This important initiative provides the opportunity for the streamlining of processes to establish a common infrastructure in trading, clearing and settlement. This will facilitate product innovation and market development, thus promoting a more conducive investment environment for investors and industry participants."
"The exercise will enable KLSE to offer all types of exchange listed products to meet investors demand and capital raising requirements by companies of all sizes, and also enhance MESDAQ's role as a market for technology and high growth companies," he said.
The objective of developing a single Malaysian exchange under the CMP will meet industry requirements in enhancing market access for investors and improving market liquidity whilst strengthening the position of the Malaysian exchange to further develop the securities market domestically and internationally.
Executive Chairman of MESDAQ Khairil Anuar Abdullah stated that he is confident that the consolidation can be achieved collaboratively in accordance with the objectives and guidelines set forth under the CMP.
"Both KLSE and MESDAQ are committed towards completing the consolidation in a timely and efficient manner," Khairil said. "With the consolidation, MESDAQ will be in a better position to offer greater access for both investors and issuers," he added.
Pending finalisation of the consolidation exercise, both KLSE and MESDAQ will continue to operate as usual and continue to receive listing applications.
